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A Standard of Performance That Measures Efficiency at the Functional

question 45

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A standard of performance that measures efficiency at the functional level is operating costs.


Definitions:

Consumer Surplus

Consumer Surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Net Social Gain

The overall benefit to society, calculated by subtracting total social costs from total social benefits.

Net Social Gain

The overall benefit to society, created when the total value generated by an action exceeds the total costs associated with it.

Rent-Seeking Activities

Practices of gaining economic benefits without contributing to productivity, typically through manipulation of the political environment.

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